EDITORIAL

Cook County's unjust system of property tax collection remains one of the biggest unsolved problems in local government. Commercial property is taxed at roughly twice the rate of residential property -- a massive disincentive for development and job creation. Most elected officials agree that, like Chicago's weather, it's a problem that no one is able (or willing) to do anything about -- mainly because the current system is essentially a huge tax subsidy for homeowner-voters.

Now, at least one elected official has shown the courage to chip away at Cook County's business-punitive property tax system. As reported last week, Assessor James Houlihan is proposing a significant overhaul in the way certain properties are taxed. The heart of his proposal -- expected to be introduced to the County Board in late May or early June -- would be to lower the tax rate on rental properties to 16% of market value from the current 33%. Meanwhile, tax rates on undeveloped land would increase to 36% to 38% from the current 22%.

The proposal still leaves major issues unresolved -- mainly how to equalize or narrow the disparity between industrial and commercial tax rates (which run between 36% and 38%) and that for homeowners (a bargain at 16%). But it is an important -- and politically viable -- first step toward reforming the Cook County system. Mr. Houlihan's vision and political risk-taking should be applauded and embraced by Cook County President John Stroger and the members of the County Board.

That's not to say there aren't imperfections in the plan. Even by raising rates on undeveloped land, Mr. Houlihan's proposal would reduce overall property tax revenues by $190 million. And there is no guarantee that lower rates on rental buildings will spur development or result in lower rents for tenants.

But it is a start. And Mr. Houlihan is floating a trial balloon on an even more imaginative plan that potentially could solve the problem of high commercial property tax rates: a business-only tax swap that would lower rates on commercial and industrial properties in exchange for a higher state income tax on corporations. That measure could break a political logjam on a statewide tax swap that includes individual taxpayers, which has failed to pass the General Assembly.

Cook County needs to reform its system for collecting the $7.2 billion in taxes each year from property owners. The assessor's plan is a critical move toward solving that towering problem.